Citigroup shares close lower on Friday, second-quarter earnings outstrip market expectations, trading revenue falls less than anticipated

July 17, 2017 7:42 am

Citigroup Inc’s (C) second-quarter earnings came in above the median analyst estimate, as trading revenue shrank at a lesser rate than initially expected and lending gained new momentum.

Citigroup shares closed lower for the third time in the past five trading sessions on Friday. The stock went down 0.45% ($0.30) to $66.72, after touching an intraday low at $65.52, or a price level not seen since June 28th ($64.52). In the week ended on July 16th the shares of the financial group lost 1.75% of their market value compared to a week ago, which marked the first drop in the past three weeks and also the sharpest one since the week ended on April 16th. The stock has neutralized earlier gains and is now down 0.24% so far during the current month, following a 10.47% surge in June. The latter has been a second consecutive monthly gain and also the steepest one since November 2016. For the entire past year, the shares of the NYSE-listed financial holding company gained 14.84%.

On July 14th the group’s total revenue was reported to have increased 2% to $17.90 billion during the quarter ended on June 30th compared to the same period a year ago, while exceeding market consensus ($17.37 billion).

Trading revenue decreased 7% year-on-year during the second quarter, or at a lesser rate than what Citigroup’s Chief Financial Officer John Gerspach had announced as forecast two weeks before the end of the quarter – a 12% drop. Trading revenue from fixed-income instruments shrank 6% during the latest quarter, while trading revenue from equities fell 11%.

At the same time, the group’s operating expenses went up 1.3% to $10.51 billion during the second quarter, while the ratio of expenses to revenue was maintained at 59%.

As a result, Citigroup’s net income was reported to have dropped 3.2% to $3.87 billion during the quarter ended on June 30th.

However, the company’s earnings per share were reported at $1.28 during the latest three-month period, while surpassing the median analyst estimate ($1.21), according to Thomson Reuters I/B/E/S.

Meanwhile, loans at the end of the second quarter rose 2% compared to the same period a year ago, while also beating first-quarter results.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Citigroup Inc’s stock price, have a median target of $68.00, with a high estimate of $78.00 and a low estimate of $50.00. The median estimate is a 1.92% surge compared to the closing price of $66.72 on July 14th.

The same media also reported that 13 out of 28 surveyed investment analysts had rated Citigroup Inc’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Citigroup stock are presented as follows:

R1 – $66.85
R2 – $66.98
R3 (Range Resistance – Sell) – $67.11
R4 (Long Breakout) – $67.50
R5 (Breakout Target 1) – $67.95
R6 (Breakout Target 2) – $68.16

S1 – $66.59
S2 – $66.46
S3 (Range Support – Buy) – $66.33
S4 (Short Breakout) – $65.94
S5 (Breakout Target 1) – $65.49
S6 (Breakout Target 2) – $65.28

By using the traditional method of calculation, the weekly levels of importance for Citigroup Inc (C) are presented as follows:

Central Pivot Point – $66.76
R1 – $68.00
R2 – $69.28
R3 – $70.52
R4 – $71.76

S1 – $65.48
S2 – $64.24
S3 – $62.96
S4 – $61.68

Where to Trade

BinaryTribune is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action, Binary Options and Social Trading.

Related